Considering Chapter 13 Bankruptcy in Kansas City? What You Should Know Before Filing

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Considering Chapter 13 Bankruptcy in Kansas City? What You Should Know Before Filing

By
Patton Knipp Dean
|April 03, 2015

If you live in the Kansas City area of Kansas or Missouri and are considering
Chapter 13 bankruptcy, you may be curious regarding the advantages and
disadvantages of this type of bankruptcy. Most people realize that filing
bankruptcy will impact their credit score and ability to make certain
purchases for a period of years, however bankruptcy can be the perfect
solution for those who face overwhelming financial issues – a huge
burden off of your shoulders, and your mind, giving you a sense of peace
and relief. At Patton & Knipp, we want to enlighten those who are
thinking of filing Chapter 13 bankruptcy regarding the advantages and
disadvantages, including long-term financial relief.

Essentially, Chapter 13 bankruptcy is a solution that you make a single
payment on a monthly basis that covers all of your debts, an amount that
is determined by your budget. By working with a bankruptcy attorney, it
is possible to determine a monthly payment that will work for you, getting
you out from underneath overwhelming debt.

While there are some disadvantages in filing for Chapter 13 bankruptcy,
the advantages outweigh the disadvantages for most people. Disadvantages include:

Bankruptcy Plan will run from 3 to 5 years

Those with secured debt in an amount greater than $1,149,525 are usually
not eligible for Chapter 13

What if you cannot pay all of your debt over a three to five year time
period? The fact is, most people cannot pay back all of their debt. In
this case, whatever debt is not paid back over the set time period is
handled just as it is with Chapter 7 bankruptcy – you have a fresh
start, because dischargeable debts are essentially wiped out. You no longer
owe these debts!

Ultimately, Chapter 13 bankruptcy gives individuals and families an opportunity
to be completely debt-free within three to five years, something that
would not be possible to achieve otherwise. Most important of all for
many families is the fact they can pay off their debts while keeping their
biggest investment, their homes.

If you are considering bankruptcy but are not sure which Chapter is right
in your situation, contact the Kansas City bankruptcy attorneys at Patton
& Knipp for your free consultation today. With three convenient office
locations in the Kansas City metro area, let us help you put your finances
back on track.

The information on this website is for general information purposes only.
Nothing on this site should be taken as legal advice for any individual
case or situation. This information is not intended to create, and receipt
or viewing does not constitute, an attorney-client relationship.